FYI: Traditionally, most portfolios have been dominated by public equities and bonds. The risks associated with the equity portion of those portfolios are typically dominated by exposure to market beta. And because equities are riskier than bonds, market beta’s share of the risk in a traditional 60/40 portfolio is actually much greater than 60%. In fact, it can be 85% or more.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-alternative-approach-alts?nopaging=1
